In the latest trading session, Western Digital (WDC - Free Report) closed at $57.05, marking a -1.13% move from the previous day. The stock lagged the S&P 500's daily gain of 0.19%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, added 0.27%.
Heading into today, shares of the maker of hard drives for businesses and personal computers had lost 12.74% over the past month, lagging the Computer and Technology sector's loss of 0.52% and the S&P 500's gain of 0.74% in that time.
WDC will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2018. In that report, analysts expect WDC to post earnings of $3.08 per share. This would mark a year-over-year decline of 13.48%. Meanwhile, our latest consensus estimate is calling for revenue of $5.14 billion, down 0.83% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.61 per share and revenue of $20.59 billion, which would represent changes of -21.18% and -0.28%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for WDC. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. WDC is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, WDC is currently trading at a Forward P/E ratio of 5.39. Its industry sports an average Forward P/E of 14.57, so we one might conclude that WDC is trading at a discount comparatively.
Investors should also note that WDC has a PEG ratio of 0.28 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. WDC's industry had an average PEG ratio of 1.07 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.